2004 Legislation
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SENATE BILL NO. 1369 – Judgments, interest rate

SENATE BILL NO. 1369

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Bill Status



S1369................................................by JUDICIARY AND RULES
JUDGMENTS - INTEREST RATE - Amends existing law to provide a minimum legal
rate of interest on money due on the judgment of any competent court or
tribunal.
                                                                        
02/16    Senate intro - 1st rdg - to printing
02/17    Rpt prt - to Jud

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-seventh Legislature                 Second Regular Session - 2004
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1369
                                                                        
                              BY JUDICIARY AND RULES COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO THE LEGAL RATE OF  INTEREST;  AMENDING  SECTION  28-22-104,  IDAHO
  3        CODE,  TO PROVIDE FOR A MINIMUM LEGAL RATE OF INTEREST ON MONEY DUE ON THE
  4        JUDGMENT OF ANY COMPETENT COURT OR TRIBUNAL BEGINNING ON JULY 1, 2004.
                                                                        
  5    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  6        SECTION 1.  That Section 28-22-104, Idaho Code, be, and the same is hereby
  7    amended to read as follows:
                                                                        
  8        28-22-104.  LEGAL RATE OF INTEREST. (1) When there is no express  contract
  9    in  writing  fixing  a  different rate of interest, interest is allowed at the
 10    rate of twelve cents (12ยข) on the hundred by the year on:
 11        1.  Money due by express contract.
 12        2.  Money after the same becomes due.
 13        3.  Money lent.
 14        4.  Money received to the use of another and retained beyond a  reasonable
 15        time without the owner's consent, express or implied.
 16        5.  Money  due on the settlement of mutual accounts from the date the bal-
 17        ance is ascertained.
 18        6.  Money due upon open accounts after three (3) months from the  date  of
 19        the last item.
 20        (2)  The legal rate of interest on money due on the judgment of any compe-
 21    tent  court  or  tribunal shall be the rate of five percent (5%) plus the base
 22    rate in effect at the time of entry of the judgment. The base  rate  shall  be
 23    determined  on  July  1 of each year by the Idaho state treasurer and shall be
 24    the weekly average yield on United States treasury securities as adjusted to a
 25    constant maturity of one (1) year and rounded up  to  the  nearest  one-eighth
 26    percent (1/8%). The base rate shall be determined by the Idaho state treasurer
 27    utilizing  the  published interest rates during the second week in June of the
 28    year in which such interest is being calculated. Provided however, that begin-
 29    ning on July 1, 2004, the legal rate of interest pursuant to  this  subsection
 30    shall  be no less than ten percent (10%) per annum. The legal rate of interest
 31    as announced by the treasurer on July 1 of each year shall operate as the rate
 32    applying for the succeeding twelve (12) months to all judgments declared  dur-
 33    ing  such  succeeding  twelve  (12)  month period. The payment of interest and
 34    principal on each judgment shall be calculated according to  a  three  hundred
 35    sixty-five (365) day year.

Statement of Purpose / Fiscal Impact


                        STATEMENT OF PURPOSE

                              RS 13796

The statutory judgement interest rate historically has had a
variety of different standards. For many years the judgement
interest rate was 18% per year. The legal rate has been on a
floating rate for many years. At the time of the establishment of
the standard the judgement interest rate had always been an
additional encouragement to satisfy judgements. Today in light of
the current treasury security rate the interest rate is quite
small. The purpose of this legislation is to put a floor on
judgement interest rates of 10%.




                           FISCAL IMPACT

No fiscal impact.



Contact
Name:    Senator Bart M. Davis
Phone:   (208)   332-1305

STATEMENT OF PURPOSE/FISCAL NOTE                      S 1369